Costa Rica Expertise LLC

Published in La Gaceta, Costa Rica’s public records bulletin, on Aug. 17, 1995:

1. A rental contract can be either verbal or written.
2. No matter what a contract says, a renter who duly accomplishes the terms of a rental agreement, can stay for three years minimum, no matter what. If the period of the contract is more than three years, the higher term takes priority.
3. At the end of the term, if the landlord wants the rental property back, he or she needs to notify the tenant at least three months before the term expires. Otherwise the term is automatically renewed for another three years or whatever the original term of the contract states.
4. When property is rented to an individual as a home and in colons, Costa Rica’s currency, the rent amount increases automatically 15 percent every year. When the rental price is agreed to in any other currency, the automatic increase does not apply. Usually rents are stated in colons or U.S. dollars in Costa Rica but can be negotiated using any worldwide currency. Businesses can negotiate any payment method and/or yearly adjustments agreeable to both parties.
5. Public services and utilities are to be paid by the tenant except for property taxes, which are the responsibility of the landlord.
6. If a property is sold or otherwise transferred it should not impact on the tenant’s rights and the new landlord must respect any existing contract.
7. Any improvements made by a tenant automatically become the property of the landlord.
8. A tenant can not change the original agreed upon use of a property. For example, a home cannot be turned into a pet store nor a pet store into a bar.
9. Landlords have the right to inspect their property once a month.
10. Tenants have the legal right to pay rent up to seven days after it is due.
11. In negotiating a rental contract, a landlord can request any guarantee deposit they see necessary to protect their interests.
12. Tenants can not sub-rent/lease a property.

NOTE: In any situation where the landlord shares a property with no more than two other rental units which he or she rents, tenant rights are almost non-existent. Any rental agreement can be terminated simply by giving a tenant 30 days written notice.

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